Mining Minerals & Metals Share Discussion Threads

[bluelynx] 25/9/2008 11:56

Hi deka

I'm just hoping for that illusive turn round in the gold mining juniors, let hope it starts soon.

[deka1] 25/9/2008 09:45

blue hi thanks for sharing that with us , good to see you in here

[1waving] 25/9/2008 09:00

Looking at what Hugh said in that interview I think that 2m oz for the JORC would be very good and 1.5m oz would be good. Seems to have been more cautious than in other releases/interviews.
Interesting what he said about Gold Fields standing ready for a deal on Komana but options are still open.

.

[1waving] 25/9/2008 07:34

BlueLynx, thanks.
Had no details from that interview on this thread until now.

Looks like Hugh is expecting drilling to start slightly earlier than usual and is being very cautious on the upcoming JORC.

[bluelynx] 24/9/2008 22:07

Waving1

Please note that this webcast is quite old, it was recorded on the 31st of August. And I think you already know most if not more than was discussed in this webcast, but below is the gist of what was discussed.

As I said Hugh McCullough expects the Junior market to improve due to the need of larger companies requiring extra resources, which are currently very hard to find, no time scale was given but Tom and Hugh agreed that when it happens it will be a very sharp move up.

Goldfield was discussed, and Hugh said that the work programme for this year is currently being agreed with them. He also said that the reason the news from the joint venture had been so quite is because the results from Komama were so fantastic that they had taken priority. Even so he said a lot of drilling has been carried out in the JV areas, but these areas are not at such an advance stage as Komama.

It was mentioned goldfields are entitled to a 51% interest in these joint ventures after goldfields has spent over $4M and a 65% stake when a further $8M has been spent. When the whole $12M is spent it is hoped that fully defined resources if not reserves will have been found in one or two of the targeted areas.

The resource of Komama West was 520Koz as of October 07. Hugh said he would be disappointed if the results were significantly less than 1Moz when the next figures are published. The results of drilling at Komama East are very encouraging with regard to thickness and grade, therefore it is expected that ounces can be added very quickly. Also the areas north and south of the strike length still offer potential to expand the resource along the 1600m strike length and also at depth. Hence he expects the resource to be over the 1Moz mark in due course.

Tom asked if a 1Moz resource would be a commercial prospect given the available data. Hugh said that technically only when a full bankable feasibility study has been carried out can you tell if this resource is commercially viable. He went on to say if the drill results continue to deliver good results like they have so far it would be expected that it would then be a commercial resource to Glencar or somebody.

It was then discussed if a bid was possible from a major company, Goldfields was said to be interested in resources of between 2-5Moz, and the areas they were interested in were America, Australia, West Africa and South Africa.

Additional finance is expected to be required in 2009. Hugh said that in the present market this would be difficult. An equity arrangement or joint venture with a major company would be a possibility, especially a joint venture on Komama with Goldfields. Hugh went on to say that he was confident that they could target 2 or 3 funds for finance, and that he is confident that they would successfully raise the funds required, because he believes there are institutions and even individual investors that would be happy to invests in the excellent projects Glencar is involved with progressing.

Tom suggested that the preferred option would be to continue to go it alone and increase value by proving up more resources for the next 18 months if possible. Hugh said that there is more value that they can add especially with another drilling season to come, but at some stage they will need to add extra resources with regard to technical and financial issues then somebody else will be needed to assist with these issues.

Drilling is expected to start around the 10th or 15th of October.

As I said not a lot was mentioned in this webcast that you did not already know, but I guess we will be getting some interesting news soon with regard to the drilling results, and from what was said in this webcast I believe we should look forward to them with some confidence, especially Komama East. The Better the drilling results the easier the financing will be.

[1waving] 24/9/2008 18:22

BlueLynx,

I take it the interview was on the t1ps paid up members site only.

What else did Hugh have to say that is of note ??

.

[valentine] 24/9/2008 17:23

There has to be a turnaround point in the market or we are all stuffed..them and us.
I sense the turnaround may be happening. It is in one or two other shares I hold..tg.

[bluelynx] 24/9/2008 17:14

BB

As they say at Tescos - every little helps! Lets just hope we get some good news soon that turns the share price around.

Hugh McCullough did say in his latest webcast on t1ps.com that he expected that there may be some take over activity, with the larger cash rich companies needing to increase their resources. If this does occur then all juniors should see their depressed valuation improved.

[bongo bwana] 24/9/2008 17:03

Nice work BlueL.

[1waving] 24/9/2008 16:59

BlueLynx,
thanks for correcting that - that trade looked to be below mid price so looked like a sell. There was also another 15k trade at 5p.

[bluelynx] 24/9/2008 16:53

Hi 1waving

the 20,000 transaction at 5p was not a sell, it was my buy, I was surprised to see it listed as a sell.

[1waving] 24/9/2008 16:44

Also due an update on the Sankarani areas from Gold Fields which Hugh said would be forthcoming after finalising the Sankarani drill program for the coming season.

After the buy of 1 million notice two sells followed very quickly of 20k then 250k. Anyway, very good to see buying volume come in. What is this new colour on the chart ??

It's just 4 weeks or so to the start of the drill season - seems to have come round pretty quickly.

[valentine] 24/9/2008 15:28

1m @ 5.15p. The opportunists are out today!
JORC must be soon then?

[deka1] 23/9/2008 16:31

the irish exchange has taken a battering the last two days , perhaps we are seeing fallout from that, only 15000 shares traded , and down almost 4%, on £750 worth, no volume in the trading , could see 3to 3.5p , in the words of victor , i dont believe it

[1waving] 23/9/2008 09:14

Author: Jim Sinclair

Dear Extended Family,

Today's events have put two very important criterion in place for the markets that you must be aware of going into January 14, 2011.

The dollar has a solid roof above it that now cannot be penetrated.
Gold has a solid floor underneath it that now cannot be penetrated.

Selling the dollar on strength and buying gold on weakness with attention to what I have taught you has lost 90% of its risk factor.

With a solid floor under gold, the gold mining business becomes a more sound investment than it ever has been. That is simple logic and is now fact.

With diminishing reserves and very few potential mines coming online, the juniors with the real thing will transition to valuation based on the value of their underlying assets and the quality of deals they make with partners. This will effectively end the rein of the short seller, both illegal and legal.

This understanding will be of great value to you as we move towards 2011.

The more dynamic the event, the less words are required for you to grasp the CONSEQUENCES.

Respectfully yours,
Jim

[bongo bwana] 22/9/2008 23:13

Thats just about the amount of time I need to get to a 400,000 holding.

Sten - thats unworthy of you. I presume in your haste to spit that 'GP' became a typo of 'SP' LOL. My strategy is occasionally successful and in these markets it has been only very rarely employed.

Also... taken from another BB

" Headshok - 22 Sep'08 - 23:56 - 4261 of 4262


Dubai Group buys 18% stake in Australian Gold Miner Citygold for A$35m. Read more here;



This is a must-read news piece which explains Dubai Group's thinking. I'd bet several other groups are thinking the same way. With no money to be made soon or without great risk in MM derivatives, bonds, treasuries, currencies, financial and most other equities, it's back to what's in the ground. Commods, but especially PGMs and Oil, represent relatively safe havens BUT with the potential for massive returns given the prices of producing juniors and mid-tiers. Imho, there is a major reversal on the way for these stocks."

[1waving] 22/9/2008 18:25

An interesting sentence from the Sept 9th Minesite article:--

'It now looks as though Komana West will end up being mined as a starter project for a much larger undertaking over at Komana East, where Hugh is hopeful that there could be "multi million ounces". '

Mining at KW by 2010 ????

[stenick] 22/9/2008 17:49

Found it--"We are pleased to have completed a financing for US$2 million in
June last. This funding will allow us to continue our intensive and
escalated drilling programme in Mali as soon as the rainy season
comes to a close in October. "
So I would think they have enough money for the time being..

[bongo bwana] 22/9/2008 17:00

Sten - Ur research database needs updating.

Mine did after Vals contribution.

Today was the heaviest trading in MONTHS in Dublin

[valentine] 22/9/2008 16:50

Quite a dependable source B.

[stenick] 22/9/2008 16:40

I must say I thought I read somewhere that GEX did not need funding for ages,it was probably in one of thier RNS's.I ain't gonner try and find it, but I was surprised to hear that they might need more funds.